"Thus any commercial activity on the territory of the embassy or in cooperation with the embassy is prohibited. As far as City Hostel Berlin is concerned, it is definitely not diplomatic or consular activity of North Korea's representative office," the spokesman explained adding that the decision to prohibit the lease was taken by the federal government of Germany.
According to media reports, the rooms in City Hotel Berlin cost 17 euros ($18) per night. Another building on the property is leased out as an event hall, the same reports added.
The UNSC Resolution 2321 calls on member states to strengthen sanction against North Korea's military build-up, namely the nuclear test of September 9, 2016. According to the document, the UN member states should "prohibit the DPRK (North Korea) from using real property that it owns or leases in their territory for any purpose other than diplomatic or consular activities."